Amazon Declares Price War, Selling $.69 MP3s

[Phillip Swanson]

Amazon is aiming to undercut Apple even more with many new chart-topping songs selling for $.69. These songs were previously priced at $.89, already well below the standard $1.29 for new releases on iTunes.

The move shows the two companies very different strategies in terms of their digital music downloads. Amazon, a distant second to Apple in sales, is attempting to make up market share (10% to Apples 70%) by luring customers in with low prices. Apple on the other hand is flexing its muscle as the industry leader by raising the price of new releases to $1.29 in 2010. However, the price hike came at a cost to their pace of growth. Digital music sales only increased 1% in 2010, compared to an 8% growth in sales in 2009.

Consistently lower prices haven't translated into increased market share for Amazon however. That 10% market share hasn't grown in the last two years. Apple's gigantic market share in the mp3 player, tablet and mobile phone markets have made any progress impenetrable. Most iOS device owners would rather stay within the iTunes and Apple ecosystem and pay more for a song than venture out to Amazon, even with considerably low prices. Plus the status of "free" for illegal downloads is tough to beat. And these users already have their devices integrated to their iTunes, which means those free songs bring them back into the iTunes ecosystem.

Its an obstacle Amazon will most likely never hurdle. Still, $.69 for a digital download is a steal, well besides free. Nothing beats that.

Source: LA Times

[bonum83]

It's better for "us" consumers!

[urwack]

Maybe apple will cut the price to .50 ummmm ya I doubt it too

[flaccid_member]

Now that's a great price point.

[otiswhuff]

safari downloader?? lol

[coolguy742]

Only free is typically piracy hahaha, and that is good that amazon is trying to beat out Apple now maybe apple will stop charging $1.29 for new songs! (doubtful that it will happen just would be nice hahah)


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[Dayvidpriddy]

I'm not sure why people buy their music digitally from any other provider except for "allTunes", I pay pennies for 320kbps music and have been since like 2005-before that I was stealing it off the torrents), I would never pay Apple or anyone else a buck for a song. Why do you guys pay Apple all this money? I don't get it...you are just helping them get even more richer!

[The Man of Sand]

if amazon had iPhone apps then I would be hooked. the only reason I really use iTunes besides for buying music is for buying and syncing apps. That's what I beat most people use it for too.

[vantheman169]

Never heard of alltunes, looks pretty cool. Thanks.

[Dayvidpriddy]

Yea allTunes rocks dude, you'll never look back! You can also choose what kpbs mp3 setting you want your music encoded in (the site encodes in real time) and there are several choices including the best at 320!

Enjoy!...no I don't work for them but I like to spread the word around about them becaues paying a buck for a song (if you are going to pay at all) is just ridiculous!

[tudtran]

Nice

[Delerowen]

I'm having problems adding credit to my account. any help would be nice.

[GmAz]

Would be cool if I bought music. But I like my music free, and where does one get free music...well the radio of course. <3 radio broadcast.

[Samcole28]

People still pay for music?

[Samcole28]

Frostwire.com

[GellBrake'rrrr]

Once again.... Competition will keep us (the consumer) happier in the long run. Even though there's basically nothing they can do to override itunes' throne, it's at least a good starting point.

[ShredNasty]

I'll continue to support my favorite artists by buying their merch and attending their live shows. I also buy vinyls. I see no need to pay Barry Goldsteinburg, Apple, Amazon, or anyone else. I'll decide if I like the artist's art by acquiring said art and experiencing it. Once approved, then and only then will I part with one single dime. Call me what you will, but it's how the eff I roll. If Larz Ulrich doesn't like it, he can sue me. I'll be listening to his pirated music during the deposition.

[GellBrake'rrrr]

I'll continue to support my favorite artists by buying their merch and attending their live shows. I also buy vinyls. I see no need to pay Barry Goldsteinburg, Apple, Amazon, or anyone else. I'll decide if I like the artist's art by acquiring said art and experiencing it. Once approved, then and only then will I part with one single dime. Call me what you will, but it's how the eff I roll. If Larz Ulrich doesn't like it, he can sue me. I'll be listening to his pirated music during the deposition.

LMFAO!!!! That made my night!!! If you haven't seen it already. Check out the Joe Cartoon comic of Larz Ulrich dissIng Napster.

[Jasper44]

I'm not sure why people buy their music digitally from any other provider except for "allTunes", I pay pennies for 320kbps music and have been since like 2005-before that I was stealing it off the torrents), I would never pay Apple or anyone else a buck for a song. Why do you guys pay Apple all this money? I don't get it...you are just helping them get even more richer!

allTunes isn't legit. If you're buying from them as a means of getting music legitimately, you're not, so you might as well just torrent.

[CaptainChaos]

Amazon is also giving 20gb of cloud storage space for 1year for the price of one album.